Discount Center ?Furniture, Inc. completed the following treasury stock transact

Question

Discount Center ?Furniture, Inc. completed the following treasury stock transactions in 2018?:

Requirements 1. Journalize these transactions. Explanations are not required. 2. How will Discount Center ?Furniture, Inc. report treasury stock on its balance sheet as of December ?31, 2018?? Requirement 1. Journalize these transactions. ?(Record debits? first, then credits. Exclude explanations from any journal? entries.) Dec. ?1: Purchased 1,200 shares of the? company's $1 par value common stock as treasury? stock, paying cash of $ 8 per share. Date Accounts Debit Credit Dec. 1 Dec. ?15: Sold 300 shares of the treasury stock for cash of $ 11 per share. Date Accounts Debit Credit Dec. 15 Dec. ?20: Sold 600 shares of the treasury stock for cash of $ 4 per share.? (Assume the balance in? Paid-In Capital from Treasury Stock Transactions on December 20 is $ 1 comma 800?.) Date Accounts Debit Credit Dec. 20

Explanation / Answer

Journal entry :

Report in balance sheet :

Discount center furniture inc. should deduct stockholder's equity by (300*8) = $2400

Date account & explanation debit credit Dec 1 Treasury Stock (1200*8) 9600 Cash 9600 (To record purchase treasury stock) Dec 15 Cash (300*11) 3300 Treasury stock (300*8) 2400 Paid in capital from sale of treasury stock 900 (To record Sales of treasury stock) Dec 20 Cash (600*4) 2400 Paid in capital from sale of treasury stock 900 Retained earnings 1500 Treasury stock 4800 (To record Sale of treasury stock)

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